Connecticut’s unemployment rate was calculated at 6.7% for June (residential survey), down two-tenths of a percentage point from the May 2014 rate of 6.9% and lower by one and two-tenths of a percentage point from June 2013 (7.9%). The unemployment rate at 6.7% has not been this low since December 2008. Connecticut’s number of unemployed residents underwent the biggest monthly drop in 2014 (-4,338, -3.3%). Since June 2013, the number of unemployed residents has declined by 20,876 (-14.3%). The civilian labor force continued to increase slightly in June (750) and has managed six consecutive monthly increases in 2014. Connecticut’s labor force is now higher by 16,076 (0.9%) participants over the year.

“Connecticut’s unemployment rate continues to decline for all the right reasons, such as broad industry job growth coupled with declining unemployment, and an expanding labor force,” said Andy Condon, Director of the Office of Research. “Summer seasonal hiring seems to have begun at expected rates.”

Nonfarm Jobs: June initial nonfarm employment estimates increased 1,700 (0.1%) positions to 1,667,400 – another new Connecticut employment recovery high (seasonally adjusted). This is the fifth monthly nonfarm job gain in a row since the January 2014 deep freeze. The state’s overall nonfarm employment has increased 5,300 positions (0.3%) since June 2013. The three-month moving average of the state’s nonfarm employment has been on a rising trend since March, indicating sustained growth.

Recession Recovery: Connecticut has now recovered 73,500 positions, or 61.7% of the 119,100 seasonally adjusted total nonfarm jobs that were lost in the state during the March 2008 - February 2010 employment downturn. Connecticut’s jobs recovery is now 52 months old and is averaging approximately 1,413 jobs per month overall since February 2010. The private sector has recuperated at a faster pace and has now recovered 82,600 (73.7%, 1,588 per month) of the 112,000 private sector jobs that were lost during the same period. Now at 1,667,400 nonfarm jobs for June, the state needs to reach the 1,713,000 level to start a true nonfarm employment expansion. This will require an additional 45,600 jobs going forward. A total of 29,400 additional private sector positions are needed to have a fully recovered private sector.

Labor Market Areas (LMAs): June 2014 preliminary nonfarm estimates show four of the six major Connecticut Labor Market Areas (Bureau of Labor Statistics-recognized LMAs) expanded employment, while two LMAs posted job declines. The New Haven LMA (2,200, 0.8%) led LMA job gainers this month, while the Bridgeport-Stamford-Norwalk LMA (1,800, 0.4%) also exhibited a solid employment increase. The Waterbury LMA (600, 0.9%) and the Danbury LMA (600, 0.9%) both posted very similar monthly job gains. The Hartford LMA (-2,500, -0.5%) was the big declining LMA this month, while the Norwich-New London LMA (-100, -0.1%) was also lower in June. Over the year, only the Norwich-New London LMA is lower (-1,900, -1.5%) in nonfarm job counts. Note: The major Connecticut LMAs are estimated and seasonally adjusted independently from the statewide numbers by the BLS and cover about 90% of the nonfarm employment in the state, so they will not fully sum to the statewide total.

Hours and Earnings: The private sector workweek, not seasonally adjusted, averaged 33.8 hours in June 2014, down two-tenths of an hour from the year-ago June 2013 estimate of 34.0 hours. Average hourly earnings at $28.18, not seasonally adjusted, were up ten cents, or 0.4% from the June 2013 hourly private sector pay figure of $28.08. The resulting average private sector weekly pay was calculated at $952.48, down $2.24, or -0.2% over the year. The year-to-year change in the Consumer Price Index for All Urban Consumers (CPI-U, U.S. City Average, not seasonally adjusted) in June 2014 was not available at the time of this release (due out July 22). Information for the manufacturing production workweek and earnings can be found in the table section of this release under the “Hours and Earnings” data category.

Private sector job growth increased just 500 positions (0.03%) in June but is responsible for all of the nonfarm job gains over the year (14,400, 1.0%). Government entities were also higher in June (1,200, 0.5%), but still showing losses - declining 9,100 jobs (-3.7%) over the year. Local government groupings look especially weak over the year (-6,900, -4.3%) this month, mostly driven by very late school closings in June 2013. Also the state is no longer seeing the usual summer uptick in tribal casino hiring, which is measured in local government, as occurred in years past.

Seven of the ten major industry supersectors added positions in June while three industry supersectors declined.  Recently supersector industry gains have come from a broad span of industry sectors, with seven of ten supersectors expanding jobs in June and eight of ten in May.

The seven major industry supersector nonfarm job gains (business survey) were led higher by the government supersector (1,200, 0.5%) this June.  Small job losses from federal (-100, -0.6%) and local government (-100, -0.1%) entities were more than offset by a state government employment gain (1,400, 2.1%), which may have been related to summer hiring.  Professional and business services (700, 0.3%) were the next fastest growing.  The scientific and technical services (2,000, 2.2%) component was especially vibrant. The trade, transportation &utilities (600, 0.2%) supersector was also adding positions, led by wholesale trade (600, 0.2%).  The education and health services (400, 0.1%) supersector contributed to monthly gains as well. Both of the goods-producing supersectors chipped in small job increases.  The manufacturing supersector (300, 0.2%) was boosted by non-durable goods (500, 1.3%), while the combined construction and mining (200, 0.4%) supersector rebounded some from a loss in May.  Additionally, Connecticut as got a small job increase from the small information supersector (100, 0.3%) which can be influenced by movie production hiring for the summer.

The three job losing industry supersectors were led lower by the leisure and hospitality (-1,000, -0.7%) supersector.  This grouping had been expanding consistently for four month in a row since the January deep freeze, but fell off this month as restaurants and hotels (-1,300, -1.0%) were surprisingly lower.  The other services (-600, -1.0%) supersector was also down as was financial activities (-200, -0.2%).  Finance and insurance (-200, -0.2%) was the weakest component in the group while real estate was unchanged.

It is worth noting that the household survey employment line component has been growing meaningfully since the start of the year, and posted a nice increase this month (5,088, 0.3%) and is running very strong over-the-year (36,952, 2.2%). Local Area Unemployment Statistics (LAUS) employment data are available on our website. As always, the sample size underlying our labor force and unemployment data is very small and caution is advised in interpreting these trends.

The nonfarm employment estimate, derived from a survey of businesses, is a measure of jobs in the state; the unemployment rate, based on a household survey, is a measure of the work status of people who live in Connecticut. Overall, as the national and state economies recover, volatility in monthly numbers can be expected. Additionally, changes in methodology that culminated in March 2011 with the U.S. Department of Labor, Bureau of Labor Statistics assuming complete responsibility for estimating all states’ monthly nonfarm job counts, have contributed to the month-to-month variability in the numbers. Jobs estimates are best understood in the context of their movement over several months rather than observed changes in a single month’s estimate.